Greece is in default and Ireland and Portugal are in limbo with the market pricing in a Greek outcome in both economies. However, the situation has changed in Spain and Italy and on this measure alone, the ECB’s LTRO has been successful.
Fiscal austerity in the eurozone: Spain dissents and Italy delivers, but at a price
Posted in European Economy on March 5, 2012Austerity hurts in Italy as leading indicators slump to post crisis lows
Posted in European Economy on February 14, 2012Government bond yields have declined substantially in Italy on the back of ECB’s 3Y LTRO as well as the commitment of the new government to austerity. Yet, leading indicators have slumped to a post crisis lows and sustainable growth seems far away as ever.
